The Federal Reserve’s interest rate hikes to tame high inflation are increasingly looking to change one particular sector of the economy — the roaring job market.stated that while the economy has slowed from its 2021 pandemic highs and higher interest rates have weakened the housing market and slowed business investment, the labor market has continued to stay strong.
Powell noted employment has risen by an average of 378,000 jobs per month over the past three months. While the labor force participation rate showed what Powell called a “welcome uptick” in August, it has remained largely unchanged since the beginning of 2022. Powell said the Fed's projections show supply and demand in the labor market to “come into better balance” over time, easing the pressure on wages and prices. That translates into unemployment rising from 3.7% to 4.4% by the end of 2023. That means 1.5 million more Americans out of work.
“While he mentioned that unemployment may not go as high as in previous inflation-reduction cycles, the goal is still to bring down the number of job openings,” Garner said. “With a weaker labor market, demand will be pushed downward across the board, so the rate hike makes sense in the fight against stubbornly high inflation.”
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Federal Reserve targets hot hiring market to tame inflation - Jacksonville Business JournalThe Federal Reserve is hoping to bring the hot job market 'into better balance.' What will that mean for businesses?
Source: JaxBizJournal - 🏆 599. / 51 Read more »
Bond market crash foreshadows new lows for US stock market, BofA warnsThe bond market is crashing as the Federal Reserve hikes interest rates to combat inflation, a warning sign for the U.S. stock market, according to Bank of America.
Source: FoxBusiness - 🏆 458. / 53 Read more »
Recession, increasing interest rates, inflation among Valley commercial real estate brokers' biggest concerns - Phoenix Business JournalIn putting together this week's Commercial Real Estate Brokerages list (click through to see the full ranking) we ask the leaders of some of the Valley's largest brokerages, including Sharon Harper and Perry Laufenberg, their thoughts inflation, remote work and subleasing in the market.
Source: phxbizjournal - 🏆 254. / 63 Read more »
Fed officials stare down market volatility, say inflation remains paramount focusU.S. Federal Reserve officials on Monday sloughed off rising volatility in global markets, from slumping U.S. stocks to currency turbulence abroad, and said their priority remained controlling domestic inflation.
Source: Reuters - 🏆 2. / 97 Read more »
These office markets may see biggest impact from remote-work adoption - Phoenix Business JournalBetween 2019 and 2021, the number of people primarily working from home tripled from 5.7%, or about 9 million people, to 17.9%, or 27.6 million people, according to recent U.S. Census Bureau data.
Source: phxbizjournal - 🏆 254. / 63 Read more »
Berge family proposes auto mall near Phoenix-Mesa Gateway Airport - Phoenix Business JournalThe application said the development phases of the site will be dictated by future real estate market conditions and the timing of approval from the city of Mesa. All future development of the site is subject to site plan review and design review approval.
Source: phxbizjournal - 🏆 254. / 63 Read more »